Governor Hochul Announces Request for Proposals to Redevelop Six Acres on Mohawk Valley Psychiatric Center Campus for Residential Development

Governor Kathy Hochul today announced the launch of a competitive Request for Proposals (RFP) for the redevelopment of six acres of property located within the Mohawk Valley Psychiatric Center Campus in Utica, Oneida County. The 6.13-acre site is part of the 119-acre campus that encompasses the old Utica State Hospital and the former Marcy State Hospital. The RFP is seeking respondents who will transform the underutilized state-owned property into supportive and affordable housing, further advancing Governor Hochul's bold housing agenda. Responses are due by February 1, 2027.

"We are committed to giving state-owned properties a new life as we address New York's housing needs while creating new opportunities for communities to thrive," Governor Hochul said. "By launching this redevelopment process in the City of Utica, my administration is taking another step forward in expanding access to supportive and affordable housing while transforming underutilized land in the Mohawk Valley."

Respondents are invited to propose a development plan with both affordable and supportive housing, along with space for supportive services, if feasible. Plans should include at least 50 units of supportive housing for people with serious mental illness, and approximately 100 additional units of affordable housing. This RFP is expected to award capital funding from the Office of Mental Health (OMH) for the construction of the supportive housing units; however, operating funding is not available through this procurement.

Proposals must also address the demolition of existing buildings and infrastructure improvements necessary to facilitate the development. As part of Governor Hochul's $500 million Redevelopment of Underused Sites for Housing (NY-RUSH), funding is available to offset associated costs. First secured by the Governor in the FY25 Enacted Budget, the NY-RUSH initiative is designed to accelerate the development of housing by building on underutilized state properties.

Empire State Development President, CEO and Commissioner Hope Knight said, "Under Governor Hochul's leadership, New York State is taking bold steps to transform underutilized properties into vibrant, community-centered assets. By launching this RFP, we are not only breathing new life into a historic Utica campus, but we are also delivering on our commitment to creating the affordable and supportive housing that New Yorkers need to thrive."

New York State Office of Mental Health Commissioner Dr. Ann Sullivan said, "Maintaining safe, stable housing is a critical component of recovery for individuals living with mental illness. Redeveloping this property on the Mohawk Valley Psychiatric Center Campus will pave the way for establishing affordable and supportive housing units, marking an exciting new chapter for this historic site and the individuals who will live there. This project reflects Governor Hochul's sustained focus on improving New Yorkers' mental health and adding needed housing."

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, "Transforming property within the Mohawk Valley Psychiatric Center Campus into affordable and supportive homes that give people the stability and services they need is a smart way to address the housing crisis while at the same time injecting new life into an underutilized state asset. This is part of the Governor's all-of-the-above approach to creating housing opportunities, revitalizing local economies, and making New York a more affordable place to live."

The Utica State Hospital opened in 1843 and was the first state-run mental health facility in New York State. In 1911, the state acquired additional acreage to establish the Marcy Hospital to house any transferred patients from Utica State. Both facilities continued to provide psychiatric services and Marcy Hospital continued expanding, eventually including a nursing school. In 1985, both facilities merged and became the Mohawk Valley Psychiatric Center Campus, which is run by OMH. Today, OMH continues to provide personalized services for individuals with mental illness as well as individuals in need of rehabilitation services. Adult outpatient services are also provided in conjunction with additional community programs and services.

State Senator Samra Brouk said, "As Chair of the Senate Mental Health Committee, I recognize that supportive housing can improve mental health outcomes and help individuals with serious mental illness feel safe and secure. I applaud Governor Hochul for continuing to address New York State's housing crisis and helping residents thrive."

Assemblymember Marianne Buttenschon said, "Mental health services must always be a priority, and this project is a meaningful step toward ensuring that the Mohawk Valley Psychiatric Center Campus continues to serve our community and the people who rely on it. Restoring and building residential and supportive housing capacity is essential to making sure individuals living with mental illness have a safe, stable place to receive the care and support they deserve. This has been a long work in progress that required collaboration at every level to reach this point, and I want to thank the Governor and all of the state and local agencies that have supported these efforts."

Oneida County Executive Anthony J. Picente Jr. said, "Expanding access to affordable and supportive housing is essential to meeting the needs of our residents and strengthening our communities. Redeveloping underutilized property on the Mohawk Valley Psychiatric Center campus presents an opportunity to put this land to productive use while creating housing options for individuals and families in Utica. I look forward to seeing this project move forward and deliver lasting benefits for Oneida County."

City of Utica Mayor Michael P. Galime said, "I would like to thank the Governor and her administration for recognizing the direct need for supportive housing that would serve individuals affected by mental health instability. It is clear this administration's direct advocacy was heard and integrated into this project and this RFP is a milestone decision for the reuse of this campus. Thank you to all involved."

Governor Hochul's Housing Agenda

Governor Hochul is dedicated to addressing New York's housing crisis and making the State more affordable and livable for all New Yorkers. Since FY23, the Governor has worked to increase housing supply to make housing more affordable by launching a $25 billion five-year comprehensive Housing Plan, enacted the most significant housing deal in decades and implemented new protections for renters and homeowners, and secured a $500 million capital fund to develop up to 15,000 new homes on underutilized state-owned property.

Under Governor Hochul's leadership, HCR has created new programs that jumpstart development of affordable and mixed-income homes - for both renters and homebuyers. These include the Pro-Housing Community Program, which allows certified localities exclusive access to up to nearly $1 billion in discretionary State funding. To date, more than 460 communities throughout the state have been certified Pro-Housing.

As part of the FY27 Enacted Budget, Governor Hochul secured a number of landmark reforms to New York's State Environmental Quality Review Act (SEQRA) to speed up housing and infrastructure development and lower costs as part of her "Let Them Build" agenda. "Let Them Build" also includes executive actions to expedite critical categories of projects that have been consistently found to not have significant environmental impacts, but for too long have been caught up in red tape and subject to lengthy delays.

The FY27 Enacted Budget completes the Governor's current five-year Housing Plan to create or preserve 100,000 affordable homes statewide, including 10,000 with support services for vulnerable populations plus the electrification of an additional 50,000 homes. More than 87,000 affordable homes have been created or preserved to date. The FY27 Enacted Budget also invests $250 million in capital funding to accelerate the construction of thousands of new affordable homes.